The baht dropped this month by the most in more than 14 years after the government cut forecasts for growth and exports, spurring outflows from Thai equities as the US prepares to raise interest rates.

The currency fell 4.2% to 35.245 baht a dollar as of 4.15pm, the sharpest monthly loss since March 2001, Bloomberg-compiled data show. It declined 0.5% on Friday and earlier reached 35.280, the lowest level since May 2009

The economy is slowing as Prime Minister Prayut Chan-o-cha fails to spur a revival and as planned investment in infrastructure falls short of target. While overseas investors sold a net US$856 million of stocks this month as of Wednesday, the most since May 2014, an index of sovereign bonds rose, suggesting demand for the relative safety of debt.

“The baht has fallen in line with a strong dollar,” said Tsutomu Soma, department manager of the fixed-income business unit at Rakuten Securities Inc. in Tokyo. “Thai political uncertainties are also weighing on investor confidence.”

The government is under increasing pressure to overhaul the cabinet and bolster the economy as waning consumer confidence and a slump in manufacturing portend one of the region’s slowest expansions, according to analysts.

The economy may grow 3 in 2015, the Finance Ministry said on Tuesday, down from an April estimate of 3.7%. Exports have contracted for six straight months and a central bank report Friday showed they fell 8.9% last month from a year earlier.

Overseas shipments may drop in 2015 by more than the Bank of Thailand’s 1.5% forecast, senior director Roong Mallikamas said on Friday.

BOE announced they were holding interest rates steady today, folk were expecting them to make a raise. The disappointment might cause a drop in Sterling. Corbyn being elected leader of the Labour party in September should also push the pound down.

Corbyn being elected leader of the Labour party in September should also push the pound down.

You must be joking ! If the Labour Party elect Corbyn they will never win an election and the continuity of a Conservative government will only serve to increase the value of the pound against other currencies.

I admire your optimism, but it's all about perception. An actual scocialist Labour making all the right noises, add in the US interest rate rise comming in September. Then the lead up to the EU referendum next year. The pound looks kind of risky.

The government freed the market and floated the Baht.
Schizophrenic times.

Ahh yes the good old days , the big untruth going round at the Time that Thai PM Chavalit Yongchaiyudh and his side kick Thaksin made an absolute financial killing in the currency markets knowing full well in advance what was coming and took advantage of it , of course Personally I did not believe a word of it cos Thai politicians especially those who are trusted to run the countrys economy as we all know the Country comes first and there financial gains come in a poor last